| June 26, 2023 | | | | | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Lead Stories | | | Traders Rushing to Undo Massive Bets Whipsaw Gas Prices
Yongchang Chin, Priscila Azevedo Rocha and Anna Shiryaevskaya - Bloomberg
Volatility has returned to European natural gas, driven in large part by a wave of new investors who bet that prices will fall.
Even before the rebellion in Russia pushed prices up 8.4%, the turbulence was evident with prolonged outages in top producer Norway, ending a long period of calm. The supply concerns sent speculators who had bet on gas declining rushing to buy futures to cover their positions â called a short squeeze â which exacerbated the price moves. Gas rose as much as 30% on June 15 and fell more than 20% the next day.
/jlne.ws/437OIxq
Wagner Russia Mutiny Add Risks to Volatile Gas Market
Stephen Stapczynski and Ann Koh - Bloomberg
Gas traders are bracing for more volatility after a short-lived rebellion in Russia poses yet another risk to supply.
Northeast Asian spot liquefied natural gas prices rose to $12 per million British thermal units on Monday, while swap values were pegged above that level, according to traders and brokers. That's about 50 cents to $1 higher than on Friday, they said. In Europe, benchmark futures jumped as much as 14%.
/jlne.ws/46rrrJp
Crypto Traders Eye $6.8B in BTC, ETH Options Expiry
Omkar Godbole - CoinDesk
The bullish buzz returned to the crypto market last week as bitcoin (BTC), the leading cryptocurrency by market value, jumped more than 15% in its best performance since March. Now a significant event looms on the horizon.
On Friday at 08:00 UTC some 150,633 bitcoin options contracts worth $4.57 billion and 1.23 million ether contracts valued at $2.3 billion will expire on Panama-based Deribit exchange, which controls over 85% of the global options activity. The bitcoin contracts due for settlement account for 43% of the total open interest, according to Amberdata.
/jlne.ws/3r58MTK
This Bull Market Is Just Getting Started, Traders Bet
Eric Wallerstein and Gunjan Banerji - WSJ
Everyone wants a piece of the new bull market.
Traders are piling into bullish options bets that would profit if the recent stock rally continues. There has been a flurry of trading tied to continued advances in everything from artificial-intelligence stocks to smaller, economically sensitive companies and regional banks.
The activity suggests the dour outlook with which many investors began the year has softened as the S&P 500 has rallied 13%. The tech-heavy Nasdaq Composite has soared 29% in 2023, on track for its best start to a year since 1983.
/jlne.ws/3NPoomY
Larry Ellison Scores $482 Million Gain by Cashing in Expiring Options
Biz Carson - Bloomberg
Larry Ellison, the world's fourth-richest person, exercised expiring options and sold $640 million of Oracle Corp. shares this week after the company's stock surged to a record. Ellison, 78, offloaded 5.25 million shares from June 20 through June 22 at an average price of about $122, according to a filing late Thursday. During that same period, he also exercised stock options at a conversion price of $30.11 that granted him 5.25 million shares.
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The economy was supposed to cave in by now. It hasn't â and GDP is set to rise again.
Jeffry Bartash - MarketWatch
The U.S. economy was supposed to be teetering on the verge of recession by now. It's not.
Why not? The short answer: Consumers keep spending, helped by rising wages and rock-solid job security. Businesses are loath to lay off workers who have been hard to hire in the first place.
Even though the economy has slowed since last year, it's still growing at a pace that suggests a recession is not imminent.
/jlne.ws/3CLjIrY
| | | | | | Exchanges | | | Cboe outlines why its clearing service for securities financing transactions will succeed where others have failed; Regulatory requirements, industry backing and new ownership led Cboe Clear Europe to introduce clearing service for securities financing transactions, a concept which has not taken off in the continent previously.
Jonathan Watkins - The Trade
The central clearing of securities finance transactions (SFTs) is not a new concept, it is one which has been tried before with varying degrees of success.
/jlne.ws/3plwpqq
Euronext agrees to sell LCH SA stake for EUR111 million as part of ongoing clearing migration; Transaction is expected to be completed in July; follows Euronext's early termination of its derivatives agreement with LCH SA in January.
Annabel Smith - The Trade
Euronext has entered into a definitive agreement to sell its 11% stake in LCH SA back to LCH Group for euro111 million. In the third quarter, Euronext will incur a non-underlying capital gain of around euro40 million as a result. The transaction is expected to take place in July.
/jlne.ws/3CO3JcS
Leveraged Bitcoin Futures ETF to Start Trading Tuesday, Sponsor Says
Amitoj Singh - CoinDesk
Volatility Shares' 2x Bitcoin Strategy ETF (BITX) will become the first leveraged crypto ETF available in the United States after the U.S. Securities and Exchange Commission (SEC) let it go effective on Friday, an executive at the company told CoinDesk.
/jlne.ws/431aLFE
Cboe Global Markets Advances 50th Anniversary Charitable Commitment and Announces $100,000 Donation to Human Rights Watch
Cboe
Cboe Global Markets, Inc. (Cboe: CBOE), the world's leading derivatives and securities exchange network, today announced a donation of $100,000 to Human Rights Watch, a nonprofit focused on investigating and exposing human rights abuses across the world.
The charitable giving is the third installment of Cboe's commitment to donating a total of $500,000 to five different non-profit organizations nominated by Cboe's global associates. The charitable campaign is in honor of its recent 50th anniversary milestone and each organization chosen exemplifies one of Cboe's guiding principles: Inclusive Collaboration, Active Transparency, Competitive Team Spirt, Superior Service and Good Citizenship. Human Rights Watch was selected to represent Active Transparency for its work in discovering abuses and protecting rights in countries throughout the globe.
/jlne.ws/3NnuHNr
| | | | | | Strategy | | | VIX On The Call Side
Cboe (Video)
In #Vol411, Joel Hawthorne @louiswinthrop lets us know that over 2.7 million $SPX #options, over 500k $VIX options and over 3.4 million $TSLA options were traded on Friday, July 23, gives us options updates for today and more.
/jlne.ws/43ZjppI
| | | | | | Miscellaneous | | | What Wall Street's most bullish analyst now thinks of this stock market
Barbara Kollmeyer - MarketWatch
It's back to business on Monday, but there's a bit of nervousness after the near coup/rebellion/cage fight in one of the world's biggest nuclear powers over the weekend.
Questions remain over a possible power struggle in Russia, as it continues to wage war on Ukraine. But barring bigger developments, investors are returning their focus on whether aggressive central banks will spark a recession and market fallout.
/jlne.ws/3r3iaXW
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